Costco makes the bulk of its revenue from its annual membership fees, which accounts for 80% of its gross margins and 70% of the operating income.
The first warehouse opened in Seattle in 1983.
In 1993, Costco merged with Price Club, after the latter declined a merger with Walmart (WMT - Get Report) . With the help of that merger, Costco has grown to become the second largest retailer in the world, behind Walmart.
As of August 2018, the multinational giant has 759 warehouses worldwide, 527 of which are in the United States and Puerto Rico.